Bluejay Management pays $7.8M to Sentinel for 83-unit rental in Flatbush

Bluejay Management through the entity 80 Clarkson Partners LLC paid $7.8 million to Sentinel Real Estate through the entity 80 Clarkson LLC for the 83-unit residential elevator building (D1) at 80 Clarkson Avenue in Flatbush, Brooklyn.
The deal closed on January 23, 2024 and was recorded on January 30, 2024. The property has 97,137 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $80 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on October 30, 2015, for $19.8 million. The signatory for Sentinel Real Estate was Brian Ritter. The signatory for Bluejay Management was Marc Jacobowitz. The contract date was November 7, 2023. Bluejay Management owns a building on the block, the 93-unit rental at 50 Clarkson Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Bluejay Management had purchased any other properties and sold one property in one transaction for a total of $37.1 million over the past 24 months.
The seller Sentinel Real Estate had not purchased any other properties and sold seven properties in seven transactions for a total of $65 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Leland Roth, head officer and Ryan Kramer, site manager. The business entities are Rose Property Mgmt Grp Llc and 80 Clarkson Llc.

The property

The residential elevator building with 83 residential units in Flatbush has 97,137 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 112 feet and is 200 feet deep with a total lot size of 22,500 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received 180 housing violations, $200 in OATH penalties, and two housing litigations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 20 of the 32 commercial properties representing 593,957 square feet of the 666,508 square feet. The largest owner is Sentinel Real Estate, followed by Sd Asset Management and then Ruben Osborne.
On the tax block, there were three new building construction projects totaling 166,312 square feet. The largest is a 132-unit, 106,549 square-foot residential (R-2) building submitted by New Empire Corp. and filed by Bentley Zhao with plans filed July 18, 2023 and it has not been permitted yet. The second largest is a 43-unit, 32,956 square-foot residential (R-2) building submitted by Marc Jacobowitz and filed by Marc Jacobowitz with plans filed March 30, 2020 and permitted January 28, 2022.

The majority, or 73 percent of the 666,508 square feet of built space are elevator buildings, with walkup buildings next occupying 14 percent of the space.

The seller

The PincusCo database currently indicates that Sentinel Real Estate owned at least 15 commercial properties with 901 residential units in New York City with 916,538 square feet and a city-determined market value of $75.1 million. (Market value is typically about 50% of actual value.) The portfolio has $31.7 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 96 percent of the 916,538 square feet of built space are elevator properties, with walkup properties next occupying 4 percent of the space. The bulk, or 79 percent of the built space, is in Brooklyn, with Manhattan next at 21 percent of the space.

The buyer

The PincusCo database currently indicates that Bluejay Management owned at least four commercial properties with 93 residential units in New York City with 117,126 square feet and a city-determined market value of $23.9 million. (Market value is typically about 50% of actual value.) The portfolio has $75.8 million in debt, with top three lenders as Cross River Bank, Popular Bank, and Bank of Princeton respectively. Within the portfolio, the bulk, or 80 percent of the 117,126 square feet of built space are elevator properties, with office properties next occupying 11 percent of the space. The bulk, or 89 percent of the built space, is in Brooklyn, with Manhattan next at 11 percent of the space.

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